• Belgravia has average mortgage of £3.6 million
• Sandbanks, Dorset highest rate outside of London and the South East
• Increased mortgage lending may mean less money for newer developments

St. James’s* is home to the highest average mortgage rate in the UK at £10,282,386 in the past year, says Lendy, Europe’s leading peer to peer secured lending platform.

Lendy says that St. James’s average mortgage is more than 22 times the value of the highest average figure outside of London and the South East – Sandbanks in Dorset, known as “millionaires’ playground”, where mortgages are an average of £459,936.

All of the top ten postcodes for largest average mortgage size in the past year are in the capital with London also home to the postcodes which saw the fastest growth in average mortgage size.

Lendy says that the postcodes with the highest growth in average mortgage size – West Marylebone (191%), Westminster (156%), East Marylebone (135%), and Fitzrovia (129%) – all saw growth of over 125% in the past five years. All postcodes further have average mortgages of over £1 million.

Riding Mill, in the Tyne Valley of Northumberland, has the largest average mortgage outside of the South of England, and has previously been ranked as the most expensive place to live outside of London.

Lendy explains that with rising property prices, individuals are increasingly taking out larger mortgages to purchase homes, particularly in commuting distance of London.

Liam Brooke, Co-Founder of Lendy, comments: “Banks are potentially getting carried away with rising owner-occupied housing prices, leaving less money for new housing developments.”

“Banks continue to fund mortgages in property hotspots like London and the south-east as property prices are predicted to continue to rise over the long term. However, this does not address the housing gap by looking to lend to developers.”

“Large amounts of lending for residential mortgages do not deal with the supply side of the housing crisis – outstanding lending to property developers is still close to record low levels.”

The Government has stated its aim to build 1 million new houses by 2020, but the current pace of construction is just 170,000 built per year.